Business correspondent
President Donald Trump has signed an executive order to reduce the customs tariffs on UK cars that are being shipped to the United States, which will lead to parts of the agreed tariff deal between the two countries last month.
Speaking at the 7 Group Summit in Canada, Prime Minister Sir Kerr Starmer described the move as a “very important day” for both countries.
It comes after weeks of talks to implement parts of the agreement, which the UK government hopes to protect British companies from the impact of the Trump tariff.
But the deal includes a 10 % tax on most British goods, including cars, and did not take the expected removal of fees on steel imports.
The agreement, which was initially agreed to last month, is the first that the White House announced since it imposed a widespread tariff on the various goods that enter America earlier this year.
He was signed shortly before the White House said that Trump will leave the summit early due to the situation in the Middle East.
Trump raised taxes on the goods entering the United States, in a series of fast ads in an attempt to encourage companies and consumers to buy more US -made goods.
These moves have sparked financial disturbances and warnings around the world, including in the United Kingdom, where car manufacturers and steel makers depend on the United States as a major export destination.
The definitions remain for the steel
In the matter that Trump signed on Monday, the United States said it would allow up to 100,000 cars in the United States with a 10 % tariff, instead of import tax by 25 % imposed on all car imports earlier this year, as agreed in the conditions stated in May.
The matter said that the United States will create a system similar to steel and aluminum, but it did not specify what it would be.
“We will allow you to obtain this information for a short time,” said the US President when asked whether the steel tariff would be dismantled for the United Kingdom – a large part of the original tariff agreement.
The UK government said it “will continue to move forward and make progress towards a 0 % tariff for basic solid products as agreed.”
It also agreed to remove definitions on certain types of space products.
Sir Kiir said that the deal “is carried out on the tariff of cars and space,” and described the agreement as a “sign of power” between Britain and America.
In response to a question about the future definitions, Trump said the UK is “well protected.” “You know why? Because I love them,” he added.
The deal related to definitions in the United States of America will enter into force after seven days after its official publication.
Mike Hazi, CEO of the Association of Motor Companies and Traders, representing the UK car makers, said it is a “great reassurance” of the sector.
He told the BBC program today that there were “much lower” exports to British cars for the United States, as the industry waited to ratify the deal.
On Monday, JLR, the UK’s car maker, has reduced Tata Motors in India, its profit expectations after shipments stopped to the United States in April due to the definitions.
“UK’s exports to the United States were not a threat to American production. Last year, we exported only 100,000 – this is a small size and high value, so it is not the type that was made in the United States,” said Mr. Hazi.
Car shipments to the United States have already incurred a 2.5 % tariff, which means that if an agreement was not reached, taxes had been imposed on UK’s exports by 27.5 % when they reached the states.
Mr. Hawes said that a 10 % tariff “gives some UK manufacturers a competitive thing because their competitors tend to come from Italy or some of Germany, which are still being targeted by 27.5 %.”

The Minister of Business and Trade, Jonathan Reynolds, said the announcement was “the result of a work taking place between the two governments to reduce the burden on UK companies.”
“We will update Parliament to implement the shares of American beef and ethanol, which is part of our commitment to the United States under this deal,” he added.
American beef exports to the United Kingdom were historically exposed to a 20 % tariff in a share of 1000 metric tons. The UK agreed to cancel this tariff and raise the share to 13,000 metric tons, according to the common conditions last month.
But the UK government insisted that there will be no weakness in food standards and that any American beef imports will need to meet the requirements of food safety.
It is not a free trade deal
The ministers praised the United States deal, along with commercial deals with the European Union and India.
But the American agreement is much limited by the full -time commercial deal that has been long discussed in Downing Street. The scope of what was signed on Monday seemed more restricted than the general conditions of the deal as shown last month.
Trump has previously announced that the agreement on customs duties is a “major commercial deal”, but it is not. The US President does not have the authority to sign free trade agreements without the approval of Congress.
Trump said that Sir Kerr did “unless others could do” to secure such a deal with the United States.
“He did what others are doing – they are talking about this deal for six years … and he did what they could not do.”
The agreement attracted criticism by opposition parties in the United Kingdom. The Conservative Party leader Kimi Badnouch called it a “small tariff deal.”
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